Futures Pointing To Modestly Higher Open On Wall Street

(RTTNews) - Following the rally seen over the two previous sessions, stocks may show a more modest move to the upside in early trading on Thursday. The major index futures are currently pointing to a slightly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

Optimism about a peaceful end to the conflict in the Middle East may generate continued buying interest, although traders may be reluctant to make more significant moves.

The surge over the past two days has lifted the Nasdaq and S&P 500 to new record highs and traders may want to see more tangible results from U.S.-Iran negotiations before making big bets.

President Donald Trump said Wednesday that the U.S. and Iran have had "good talks over the last 24 hours" and expressed confidence a deal could be reached in the coming days.

A report from Axios said U.S. officials expect Iran's response to a one-page memorandum of understanding to end the war within the next 24-48 hours.

Noting some U.S. officials are skeptical a deal will come together, Axios said the White House wants a diplomatic breakthrough by the time Trump wraps his China trip next Friday and could resume military action if a deal is not in hand by then.

In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rebounded by less than expected in the week ended May 2nd.

The Labor Department said initial jobless claims rose to 200,000, an increase of 10,000 from the previous week's revised level of 190,000.

Economists had expected jobless claims to climb to 205,000 from the 189,000 originally reported for the previous week.

Stocks moved sharply higher early in the session on Wednesday and saw further upside as the day progressed. The major averages added to the gains posted during Tuesday's session, with the Nasdaq and S&P 500 reaching new record closing highs.

The major averages ended the day just off their highs of the session. The Nasdaq surged 512.82 points or 2 percent to 25,838.94, the S&P 500 shot up 105.90 points or 1.5 percent to 7,365.12 and the Dow jumped 612.34 points or 1.2 percent to 49,910.59.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan's Nikkei 225 Index soared by 5.6 percent, while Hong Kong's Hang Seng Index leapt by 1.6 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.6 percent, the German DAX Index is down by 0.1 percent and the French CAC 40 Index is just below the unchanged line.

In commodities trading, crude oil futures are plunging $4.45 to $90.63 a barrel after nosediving $7.19 to $95.08 a barrel on Wednesday. Meanwhile, after soaring $125.80 to $4,694.30 an ounce in the previous session, gold futures are jumping $52.70 to $4,747 an ounce.

On the currency front, the U.S. dollar is trading at 156.34 yen versus the 156.39 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1770 compared to yesterday's $1.1747.